Companies who have implemented the TOC Operations solution have typically found that there is 20% - 50% spare capacity that was hidden by the chaos under traditional methods of management.
Constantly having to pacify customers – instead of winning more business?
Overdue orders, backlogs and missed deliveries are what come to mind when one mentions “operations”. An equally depressing image is one of high cost overtime, fire-fighting and chaos.
Many organisations report that a significant amount of their sales people’s and senior management time is spent trying to expedite orders, convincing Operations to change the schedule and priorities, pacify customers and generally engage in non-value adding activity.
Even when negotiating with customers about new orders there is a feeling of making empty promises that this time it will be better.
The Operations environment is subject to so much variation. Even though considerable time is spent in agreeing plans and schedules, it never turns out that way.
The reasons given are: materials or parts not available when needed; shortages of appropriate resources; unavailability of needed equipment; too much rework or scrap. All of these lead to constantly changing priorities, costly overtime, longer than desirable lead times and poor due date performance or stock-outs.
The solution lies in the application of Goldratt’s Theory of Constraints (TOC) based Operations Management
Whether your environment is what we call MTO (Make to order – i.e. where each customer order has a due date) or MTA (Make to Availability – i.e. where the customer expects to be serviced from a finished goods inventory), the TOC based approach brings the focus to the scheduling and execution management in a way that buffers against the inherent variability and enables promises to be met.
Companies who have implemented the TOC Operations solution have typically found that there is 20% – 50% spare capacity that was hidden by the chaos under traditional methods of management.
When this is revealed, lead-times have been reduced by 50% and due date performance or service levels rise to 95% – 100%.
In MTA the inventory turns go through the roof. While the level of performance increases significantly the costs typically reduce by 15% – 20%.
Over the past 30 years, thousands of businesses worldwide, from one-man-bands to multi-national corporations, have improved their operational performance using the concepts of flow and constraint management outlined in The Goal.
- More than 6 million copies sold
- Continuously in print since 1984
- Translated into 21 languages
- Taught in over 200 colleges and universities
Get this book and discover why your efficiency improvements are causing those late deliveries, and the one simple change you can make to your shop floor to increase capacity by 20% (and deliver on-time)!
Unfortunately, many thousands of people read the ideas and erroneously dismissed them as not applicable or too difficult – only to continue to struggle or to go out of business.
Given today’s business conditions, excellence in delivery performance on short lead times is imperative for survival and as a platform for business growth and bottom-line performance. Goldratt’s solutions can deliver both for you.
Goldratt UK: Eliminating the implementation risks
Organisational culture and people’s behaviours under TOC Operations Management are undeniably different from traditional culture and behaviours. However, culture and behaviour cannot change until results happen.
Our implementation approach helps you accomplish results very quickly – typically within three months – while ensuring the risk is minimised and return on investment high.
Not only do we provide the knowledge for TOC Operations Management, we also help your organisation adopt and absorb the required changes so that real improvements are realised.